Regression Analysis Findings

Our regression analysis shows strong correlations with high performance when organizations effectively:

• Prioritize the backlog
•  Have a clear definition of done created within the team
• Don’t over-emphasize development cost when prioritizing requirements

Impact of Respondents’ Perceptions

Respondents’ perceptions of product development methodologies also showed up in our data. Over 90% of survey respondents are actively involved in the product development process. Those who lack an understanding of the method in use clearly are part of organizations that underperform.  Additionally, those who believe using Agile/Scrum leads to high product profitability are more likely to be in organizations that perform well financially. Knowledge clearly makes a difference.

Top Tools and Automation

Lastly, the most highly productive teams believe their effectiveness would increase through the use of better tools and automation. Here, again, knowledge makes a difference. Teams that have implemented effective team processes are looking to expand their uptake of DevOps and Extreme Programming (XP) practices with the latest automated refactoring, test, build, and infrastructure-deployment tools.

Looking Ahead

As of this post, we conclude our exploration of the findings drawn from the latest Global Study of Product Team Performance. Starting next week, we’ll switch gears and begin a discussion of product management tools that can grease the wheel of success within your team and your organization.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Product Development Findings appeared first on Actuation Consulting.

This post discusses the sixth and final key finding gathered from the analysis of the latest Global Study of Product Team Performance.

#6 Key Performance Indicator

Product Teams that Believe Their Effectiveness Would Be Improved by the Use of Product Tools and Automation Are Likely to Be High Performance Teams in Companies that Achieve Their Financial Goals and Objectives.

Just over 50% of our survey respondents are members of technology development teams. For this reason, this finding is particularly meaningful to technology development organizations.

Desire to Improve Tools and Increase Automation

The sixth indicator of high performance is essentially possessing the desire for improved tools and increased automation. Organizations that have implemented effective team processes often seek out ways to further improve efficiency.

This indicator points to the rapid uptake of DevOps and the Extreme Programming (XP) practices that underpin it.

This particularly points to:

• Test automation of every kind starting from the practice of test driven development
• Refactoring (and tools that automate refactoring)
  • Continuous integration, continuous delivery, and continuous deployment (and
  the automated build tools and application release tools that support these
  practices)

The up swell of enthusiasm for test-and-build automation has driven strong tool development and rapid tool advancement. This includes having check-ins kick off build scripts that not only compile binaries, but also generate documentation, tests, and statistics. They also kick off test automation, plus generate and deploy distribution media, website pages, and program logic to servers.

In addition, on the operations side, tooling like continuous configuration automation enables automated rollout of both physical and virtual infrastructure. The result is that teams with effective team processes find themselves continuously looking with longing for the latest – and the latest is rapidly evolving.

Next Post: Wrapping It All Up

For several weeks now we have delved into the responses and analysis of the latest Global Study of Product Team Performance. Next week, we reach the conclusion when I will share a few final thoughts on this interesting survey and its outcomes.

Recap of the Six Key Performance Indicators:

1. High performing teams have a clear definition of “done”.
2. Respondents unable to associate a product development methodology with product profitability are unlikely to be on a high performing team.
3. Respondents who believe using Agile/Scrum leads to high product profitability tend to be in organizations that meet or exceed their financial goals.
4. Teams that consider development cost as a criterion for requirements prioritization are more likely to under-perform (i.e., negatively correlated).
5. There is a strong correlation between an effectively prioritized backlog and high product team performance
6. Product teams that believe their effectiveness would be improved by the use of product tools and automation are likely to be high performance teams in companies that achieve their financial goals and objectives.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Product Tools and Automation appeared first on Actuation Consulting.

Today we will look at the fifth of six total key findings drawn from the analysis of the latest Global Study of Product Team Performance. Next week we will wrap up the full set of analytic findings gained from the latest survey.

#5 Key Performance Indicator

There is a Strong Correlation Between an Effectively Prioritized Backlog and High Product Team Performance

A substantial 43.5% of survey respondents indicate that their team prioritizes the backlog effectively. When we submitted this question to regression analysis, the correlation was clear:

Product teams that effectively prepare and prioritize their backlog of work are more likely to perform at a high level.

Conversely, 37.9% of respondents indicate that their backlog is a jumble. Our regressive analysis shows that product teams that describe their backlog in this way are negatively correlated with high performance. That is, they are unlikely to perform well.

Grooming the Backlog

The importance of effective backlog grooming cannot be overstated. Not only does an effectively groomed backlog ensure that teams are always applying themselves to work that customers will highly value, but it also serves to motivate developers.

In fact, just by working on the top backlog item developers know they will positively impact customers more than they would by doing anything else. That motivational factor cannot be overstated.

Next Post: The Sixth and Final Key Performance Indicator

In the final summary post of this series based on findings from the Global Study of Product Team Performance, we will pull the study’s takeaways together and give you the complete scope of takeaways you can use to build a stronger, more effective product team.

Recap of the First Five Key Performance Indicators:

1. High performing teams have a clear definition of “done”.
2. Respondents unable to associate a product development methodology with product profitability are unlikely to be on a high performing team.
3. Respondents who believe using Agile/Scrum leads to high product profitability tend to be in organizations that meet or exceed their financial goals.
4. Teams that consider development cost as a criterion for requirements prioritization are more likely to under-perform (i.e., negatively correlated).
5. There is a strong correlation between an effectively prioritized backlog and high product team performance

The post Effectively Prioritized Backlog and High Performance appeared first on Actuation Consulting.

Question: Which of the following methodologies do you associate with increasing your product’s profitability?

Product Profitability – Drilling Down on the Response

More than half of survey respondents (52.1%) named Agile/Scrum as the methodology most often associated with increasing product profitability. Blended (some Waterfall, some Agile) was a distant second with 22.4% of responses. Waterfall (3.5%) and Kanban (2.8%) barely garnered any responses. However, it is interesting to note that a significant 15.7% of respondents are unclear which methodology is associated with growing product’s productivity.

Question: Which of the following product management professionals does your organization utilize? (Check one.)

Product Management Roles – What the Responses Tell Us

Slightly more than 40% of respondents indicated that their organization uses product managers. Nearly a third (32.3%) described use of both product managers and product owners. An even smaller number (16.1%) indicated that the only product management pros in their company were product owners. Sadly, a full 11% replied that their companies use neither product managers nor product owners.

Coming Up

Next week we will dig deeper into the responses generated by the Global Study Product Team Performance Survey. The survey findings (and thus this series of posts) will culminate in the revelation of the six new key performance indicators shared by high-performing teams. These are factors you can use to increase your own company’s success.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Methodologies & Product Management Roles appeared first on Actuation Consulting.

Question: Who defines your product team’s definition of done that you apply against every feature or story? 

Insights into Answers

Having a clear definition of done is a basic element of a successful product management process. Yet, only 29.4% of respondents indicated that a collective decision by the product team established this important definition. It is disturbing that 7.4% of respondents say their product teams have not defined “done” and that their companies have not designated anyone to define it.

Question: Which of the following activities do first level engineering managers in your organization undertake beyond day-to-day management of the team? (Choose up to five.)

The Roles Fulfilled by First Level Engineering Managers

Clearly, in most organizations surveyed first level engineering managers’ duties extend well beyond day-to-day team management. The exceptions to this conclusion are the 7.9% of respondents from teams that have no managers and the 5.9% who hold that these managers do little beyond day-to-day management.

Going Forward

Next week I’ll share more insights from our latest research. Plus, I’ll continue building toward the revelation of the six new statistically significant factors that separate high performing teams from the pack.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Definition of Done: Who Should Define Done? appeared first on Actuation Consulting.

Having a clear definition of done is a basic element of a successful product management process. Yet, only 29.4% of respondents indicated that a collective decision by the product team established this important definition. It is disturbing that 7.4% of respondents say their product teams have not defined “done” and their companies have not designated anyone to define it.

Who is best at defining done? 2016 Copyright Actuation Consulting. All rights reserved.

Definition of Done from a Statistical Point of View

We cross-correlated these results with teams that meet or exceed organizational expectations. The first result that stood out was a distinct negative correlation between winging it and team productivity. That is, teams that don’t define “done” don’t perform well.

Second, our data definitively shows that it matters who creates the done definition. Organizations in which team members themselves create a clear definition of done are more likely to outperform their counterparts: product teams that have their product owner draft their definition of done perform most effectively closely followed by product teams that develop their definition of done collectively.

There was no effectiveness correlation to having a manager outside the team (whether “management”, the product manager, or engineering management) dictate a team’s definition of done. We think the practice of establishing a definition of done within the team makes team members hold themselves accountable to their done definition and to each other, with any benefit of management’s standardizing a definition outweighed by the demotivating effect of
management handing it down as an edict.

Conclusion

Clearly, defining done matters. And when a member (the product owner) or all members of the team (collectively) do the defining, teams are likely to deliver at the highest levels of performance.

If you are interested in learning more our lastest research can be found here.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Definition of Done: Who Should Define Done? appeared first on Actuation Consulting.

How can you determine which product management skills are most important at various states of your company’s growth?  For starters, simply ask yourself what your organization is trying to accomplish with its product activities.

Companies are basically trying to accomplish one of two objectives:

1. Create new value
2. Increase existing value

Growth Stage Matters: The Product Manager’s Role in a Start-Up Company

Let’s take a closer look at a product manager’s vital role in a start-up company.

The mission of a start-up company is to identify a market opportunity and successfully collaborate with potential customers until a scalable product is developed and introduced in the market. These tasks require heavy customer involvement and a rapid trial and error process that the product manager will be deeply involved in. One key goal is to attract a core base of early adopters for your product that can be grown into a larger mass-market customer base.

Essential Skills for Product Managers in Start-Up Companies

Because of the nature of what your start-up company is trying to accomplish, the following product management skills are vitally important:

• Creative thinking
• Entrepreneurial spirit
• Conceptual and analytical abilities
• Customer focus
• Teamwork

While budgeting and profit and loss management are critical skills for product managers in a more mature company, they are less important in a start-up.

Where Product Managers Spend Their Time in a Start-Up

As a product manager in a start-up you will spend a great deal of time working face to face with prospective clients and new customers. This is essential to facilitate your company’s efforts to continually tweak the initial prototype so it can attract more customers.

You’ll also be working closely with the development team. Time is critical in the start-up stage and detailed processes can really slow things down. Because you work closely with both development and the customers, you can have an impact of streamlining processes and ensuring that the new product meets customers’ needs.

The start-up’s flat organization structure means you’ll probably be taking hands-on responsibility for the full range of product management responsibilities. These can range from identifying the needs of the market to developing a launch plan for the initial product. It’s a challenging position that gives you plenty of opportunity to have a strong impact on your company’s success and growth.

Growth stage matters and has a direct bearing on your role as a product manager. In my next post I’ll discuss the primary mission of a product manager in a successful mid-sized company.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Growth Stage and the Product Manager appeared first on Actuation Consulting.

Many challenges you face in product management require you to interface with other departments. Solving problems completely within your primary team is simply not a possibility.

It is important when you seek out the help of other departments that you understand each team’s frame of reference. If you want them to invest their time in helping you meet a challenge, it helps if you can simultaneously help them meet one of their objectives. Self-interest is a powerful motivator, even with teams.

Complex challenges you face often require you to form a special team that draws players from multiple departments and various levels in your organization. Your ability to appeal to others and gain their support of the new team is critical.

Consensus Building for Product Managers Defined

Consensus is at its core a form of decision-making that occurs when team members agree on a course of action to resolve a shared problem. Consensus is powerful because while some on the team may exert influence over a decision, the final decision isn’t based on the power inherent in any one person’s position – this includes the CEO, product manager and any one else on the team. By not allowing the exertion of position power, you avoid causing others on the team to feel like a course of action is being rammed down their throats. If you want the team members to support decisions made, everyone needs to feel they have been heard and hold a personal stake in the chosen course.

The Product Manager as Facilitator

Since your role as Product Manager requires you to maintain healthy relationships with many different functional areas in your company, you are likely to be called upon to serve as facilitator of the new specially formed team. Your success in this role demands that you not allow your personal biases to influence decisions too heavily. As facilitator you are responsible for making sure every voice is heard.

Next week I will follow up on this topic by digging deep into other activities that will help you succeed as a product manager.

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Insights to Help Product Managers Build Consensus appeared first on Actuation Consulting.

There are many ways to become a successful leader. Great leaders, regardless of their roots or path in life have a common attribute – they are trustworthy and honest. Integrity is particularly important for those who rely heavily upon influence to achieve their objectives. A great example of this type of role is that of a product manager. Our data shows that only 19% of product managers have profit and loss responsibility, as such, almost all product managers are heavily dependent upon trust and influence.

There is more to integrity than honesty and trustworthiness. The signs of integrity manifest themselves in a range of additional attributes including; open communication, transparency, and ethical decision-making.

Personal accountability is a key component of integrity as well. When a leader, regardless of position in the organization, exemplifies these qualities and holds themselves accountable to practicing honesty and ethical decision-making it often triggers positive organizational karma.

The Characteristics of Integrity

• Humility: Titles don’t guarantee respect. What counts is a leader’s ability to show commitment every day through sincere collaboration, visible dedication to common efforts, effective interpersonal skills and team play.
• Help Others Succeed: Great product managers and leaders help their teams shine! They encourage others to share the spotlight. When leaders attempt to promote themselves by taking credit for their subordinates work unjustly others see through it. Fostering a culture of modesty and demonstrating intolerance for bullying or nastiness helps set the stage for success.
• Nurture Trust: Hire people smarter than yourself and get out of their way. Great leaders build strong teams and know their own developmental areas. Supplementing your team with complimentary people and skills shows maturity. This also requires the right mix of delegation and hands-on control. Striking the improper balance signifies a lack of trust.
• Encourage Calculated Risk Taking: Great leaders encourage risk taking and ensure that the organization learns from failures or mistakes. This includes fully vetting a wide range of ideas while suspending judgement. Punitive leadership and cultures erode trust and a willingness to take chances and innovate. These can be toxic to success.
• Demonstrate Continuous Learning: Change is the one constant. Exemplify continuous learning and share your knowledge. Encourage others to reach broadly and to bring that knowledge back into the organization. It helps to remember that markets are dynamic, they live and breathe. Standing still means you are likely to be left behind.
• Practice What You Preach: Integrity should not stop in your workplace it should be your mantra in all aspects of your life.

Inspired by an article written by Adelia Cellini Linecker in IBD, Feb. 2016

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post Leading With Integrity appeared first on Actuation Consulting.

What Exactly is the Technology Stack Fallacy?

The theory attempts to explain why so many firms that should have the resources to build the next “big thing” often fail to do so and fall prey to nimbler competitors. This question gets at the heart of both innovation and disruption, a topic that matters to product managers and product organizations.

Anshu Sharma proposes an answer to this with his technology stack fallacy theory. At its essence the stack fallacy is the “mistaken belief that it is trivial to build the layer above yours.” By way of example Mr. Sharma points to Oracle and Salesforce.com. From Oracle’s perspective Salesforce.com is a “hosted database app” and yet after spending millions of dollars Oracle has been unable to beat Salesforce.com at Saleforce’s core competency customer-relations management.

The stack in the theory is the layer cake of technology. Each layer sitting on top of the other which ultimately delivers a product to the user. E.g. the server through the operating system running on it, through the cloud and then the apps running atop the stack.

In the tech industry companies commonly violate the stack fallacy by attempting to move up the stack with mixed results. Here are three that struggled:

Samsung – started by making components for Apple. Then tried to move up the stack by creating its own cellphones. Initially it has enjoyed great success. However, competitors are challenging it aggressively with the commoditization of Android smartphones.

IBM – moved up the stack from making things that compute to selling computation services. The result? Shrinking revenue over the last 15 quarters.

Google – tried to move up the stack from search to social networking and the result was Google+.

The Technology Stack: Easier to Move Down Than Up

The reason companies fail to move up the stack is simple says Mr. Sharma. They lack first-hand empathy for what customers of one product level above theirs in the stack actually want! For example, database engineers at Oracle don’t fully understand what Fortune 500 supply chain managers want.

Interestingly, while moving up the stack often leads to problems, that is not the case for moving down the stack. Take the case of Apple where product team members know exactly what they want in a mobile chip. Google also moved down the stack very effectively creating its own servers and datacenters. The same can be said of Tesla current move into batteries.

While this theory explains many organizational failures and struggles at the product level it is not 100% predictive. There are ways around it. The key comes down to product managers, teams and organizations having true first-hand empathy for customer needs and means of effectively capturing them.

In other words, it all boils down to who understands the customer better!

Advancing the Profession of Product Management
website I consulting I training I toolkits I books I blog I twitter

The post The Technology Stack Fallacy appeared first on Actuation Consulting.